The Department for Work and Pensions has commissioned a review by the Government Actuary's Department to contribute to the UK state pension age evaluation.

GAD will consider how changes to life expectancy will affect the state pension age and whether individuals reaching the state pension age could expect to spend specific proportions of their older life receiving a state pension.

“This report should produce an indicative state pension age timetable based on trends in life expectancy figures and the government’s view on the proportion of adult life people retiring between 2028/2029 and 2064 should spend in receipt of state pension,” the DWP letter to the GAD said.

In relation to people retiring between these dates, the DWP asked GAD to consider two scenarios in its report. These include: a third of adult life spent above the state pension age with adult life beginning at 20 and 32 per cent of adult life spent above state pension age with adult life beginning at 20.

It was requested that GAD conducts “appropriate sensitivity analysis around high and low life expectancy variant projections, the likelihood of revision of life expectancy forecasts” among other relevant factors.

AJ Bell senior analyst Tom Selby said: “Rapid rises in life expectancy have already seen the government set out plans to hike the state pension age for men and women to 67 in 2028. It’s worth remembering that this is just two years higher than when the state pension was created in its current form 80 years ago. At that time, people were only expected to draw their state pension for a few years – the average life expectancy for both men and women born in 2016 is over 90 years.

“If people keep living longer, that will put huge pressure on the public purse and could make further increase in the state pension age inevitable. Indeed, savers may face the prospect of waiting until their 70s to receive the state pension.

“This is all part of a broader societal shift from collective to individual responsibility for retirement provision, punctuated by the demise of gold plated defined benefit pensions. The state pension provides a decent bedrock upon which to build, but anyone who wants to retire early or receive an income of more than £155 a week will need to provide for themselves.”

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